Question about MarketCap and Cashing Out

[zhekinsp]

So lets say BTC is worth 100K / BTC

Now lets say that i have 1 BTC , and i wish to sell it to someone and they say "I'll give you cash -5%"

So i take Fiat money , and take out 95k and proceed to send them the BTC.

Would the market cap go down if i took out 95k out of the market cap?

How would anyone know or how would the metrics figure out that 95k has been taken out in cash if i have just sent BTC to someone else?

Thanks everyone!

Total market will still exist the same,because the market value for one bitcoin is 100K so you just lost your total profit and the other person made that profits in no time.Actually market cap value is just a crappy calculation as other explained its just the multiply of total mined coins and the last selling market price on any listed exchange which is more high.

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[gentlemand]

Is there a better metric than Market Cap or is this the only metric that is used to measure the actual value of BTC ?

Not to my knowledge, or at least not a commonly adopted standard. Anyone got any ideas?

It's used in stock markets and no one seems to question it but those markets are far less warped, much steadier and only adults are allowed to play. Unlike crypto there's no way of creating a market from nothing and driving it yourself but you can do that a million times a day in cryptoland.

Ultimately though the same thing applies to everything. No way could you sell all the gold in the world and get 7 trillion dollars. The price would collapse until you were giving it away. Jeff Bezos couldn't realise his net worth by selling all of his Amazon stock. There wouldn't be enough buyers at the price it's currently valued at. There's a finite amount of buyers at any price.

[Polar91]

I don’t think a sell has anything to do with market cap because there is both a seller and a buyer.  You are selling for 100,000 but someone else is buying for 100,000.  I think the market cap is based on the value of each Bitcoin which is 100,000 in your example.

The case here is the amount he wished to sell which will not be recorded on the blockchain. With that, I don't think the entirety of the market cap will be affected if you are to sell your bitcoin outside of the public ledger which is the blockchian. One other thing to consider if they are selling huge amount of bitcoin and to escape the higher fees with it is to sell the entire account itself to the buyer, which is for me, not really beneficial to the growth of the market and will just exploit vulnerabilities to our identities.

[error08]

So recently the market has lost 30-50B in market cap , So i'm assuming that institutions are buying BTC and then dumping it on the market whilst shorting it. If they made a bunch of Fiat Backed Crypto currencies (Through "QE") , Couldn't they just buy up the tokens , Long the price and then Sell the tokens and short it down again? Is that what is happening in the market right now?

Is there a better metric than Market Cap or is this the only metric that is used to measure the actual value of BTC ?

Correct, huge influx of money from institutions could change the market cap if they trade on exchanges, buy so much bitcoin then dump it next week, the price will change significantly, however, the price may differ on other exchanges as the transactions only occur on one exchange, it happens a lot.
I wouldn't really care about market capitalization metric to measure the actual value of bitcoin, simply judge it by the supply and demand on the market, just check it on exchanges.

[imstillthebest]

I don’t think a sell has anything to do with market cap because there is both a seller and a buyer.  You are selling for 100,000 but someone else is buying for 100,000.  I think the market cap is based on the value of each Bitcoin which is 100,000 in your example.

The case here is the amount he wished to sell which will not be recorded on the blockchain. With that, I don't think the entirety of the market cap will be affected if you are to sell your bitcoin outside of the public ledger which is the blockchian. One other thing to consider if they are selling huge amount of bitcoin and to escape the higher fees with it is to sell the entire account itself to the buyer, which is for me, not really beneficial to the growth of the market and will just exploit vulnerabilities to our identities.

 i think every money thrown into crypto are all going to be recorded on the marketcap becaus this is like the overall value of the coins   .  and i dont think that selling btc outside the chain is possible  , that wont  be a crypto transaction then  . selling huge amount of cryptos can make the market cap grow but make the price of the specific coin dumped   . that is what i know about how blockchain work but still , you can correct me if im wrong  , i might be missing some  points on here   .

[Dart18]

The one you are looking for is the exchange.
You did not went through it.
Because of that there will be no records of what had happened. Someone just sent 1 BTC and circulation will go on without a trace of whatever happened to the buyer and the seller in person.

That still happens by now and the market cap is just the basis of how much bitcoin could be.
If you have traded it with USDT with the use of an exchange then there will be a record.

[deisik]

Is there a better metric than Market Cap or is this the only metric that is used to measure the actual value of BTC ?

Not to my knowledge, or at least not a commonly adopted standard. Anyone got any ideas?

Trading volumes are a by far better metric

Indeed, we don't know how much of the reported trading volume is real as in the first half of 2017 (and before that) most of Bitcoin trading volume was fake due to Chinese exchanges showing simply insane figures (like the total supply of bitcoins changing hands a few times a day)

However, if they are pretty close to real, which seems to be the case now, it is in fact a useful metric as it represents the real activity of traders and their interest in a particular coin (Bitcoin is still the preferred choice, though). And trading volumes is not the only pebble on the beach anyway (as there are many others)

[el kaka22]

The marketcap is not what you trade but it is how much bitcoin is worth in the eyes of the public. There could be only a single satoshi sold at 100 thousand dollars and nothing else (no sale above or below after that) and that would mean each coin worth 100k.

If you sell your bitcoin for 95 thousand dollars that means the price of bitcoin is 95 thousand dollars and market cap is arranged like that, however as soon as the next person buys bitcoin for 100 thousand dollars it will go up, the price is whatever the latest sale price of bitcoin is, whoever bought bitcoin the most recent (usually bitcoin is sold every second multiple times so it doesn't take time) that is the price of bitcoin at that current moment.

Marketcap is always calculated with most recent traded (which includes both buying and selling) price of it.

[CryptoBry]

Would the market cap go down if i took out 95k out of the market cap? How would anyone know or how would the metrics figure out that 95k has been taken out in cash if i have just sent BTC to someone else?

Certainly, Bitcoin can go down to that level IF there is only one transaction for that specified day and it happened to be your transaction. You see, a single BTC transaction is just a drop in the ocean and will not in any affect the movement of the price of Bitcoin unless you can also be influencing many thousands of people to be doing the same, even then I still have a big doubt of its influence in the total global Bitcoin market.

[BitHodler]

You see, a single BTC transaction is just a drop in the ocean and will not in any affect the movement of the price of Bitcoin unless you can also be influencing many thousands of people to be doing the same, even then I still have a big doubt of its influence in the total global Bitcoin market.

When the mass starts selling or buying, you can be sure that the market will respond to that. Technically speaking, there only need to be one large player selling/buying and bots on other exchanges will very likely replicate that move.

Nowadays most projects print as many tokens as possible because they know it's the only way to get a high market cap. It says little about their liquidity, but it's a convenient aspect that helps get noobs excited because they pay attention to that.